Market Analysis for Jewellery Industry
The global jewellery market is now undergoing an improvement and healthy growth with the increase in the overall sales and changing lifestyles. The annual global sale is found to be €148 billion and is expected to grow at 5 to 6% each year. Asia Pacific consist of the world's largest jewellery market, with the main contributors being China and India, who are largest consumers of jewellery in the world having large number of processing and manufacturing industry. Considering country wise, U.S. is the largest jewellery market in the world which is mainly dominated by diamond jewellery.
It is found that the jewellery industry is still local in nature as the ten biggest jewellery groups of the world comprises of only 12% of the global market. The global market for jewellery is likely to beat USD 257 billion by 2017. Even though the world of jewellery is driven by Asia Pacific and the Middle Eastern markets, still U.S. continues to be the leading player in this industry. The market is still growing regardless of the economic unrest in Europe and China.
Euromonitor International, market research firm considering the jewellery sales of 32 countries, states that fine jewellery sales has grown by 87% of approximate $275.4 billion global jewellery market and might have a compound annual growth rate (CAGR) of 7.4% by 2017.
Most of the raw materials are generated by Canada, Russia, Africa and Australia, while countries like India, China, Italy and Turkey are the main jewellery manufacturers and diamond processors, and are mainly marketed in countries like US, Europe, Middle East and Asia. Out of these raw materials 50% is used for jewellery manufacturing, 40% is used for investment and 10% is used in electronics, medicine etc. The demand for symbolic jewellery is strongly coming from Asian countries and few European regions. In India, tourists are also participating in the growing demand of symbolic jewellery market. It is found that people are less focused on buying branded jewellery as they prefer local ones more. Like in India, 96% of the total players in this industry are small family-owned businesses. There are over 2.5 million jewellery shops in India, around 450,000 goldsmiths and 100,000 gold jewelers. In the U.S., non-brand jewellery shops account for 79% of the total jewellery market.
India is attaining importance as an international destination for jewellery with companies like Wal-Mart and JC Penny already procuring jewellery from India. LouLouBijoux in US is an exclusive wholesale distributor for US and Canada. Italy based Buccellati is another famous wholesale outlet for its jewellery and watches.
Online Jewellery Stores
Study shows that the online jewellery sales are around 4-5% of the market today and depends on the regions, brands, and types of jewellery. The top five online jewellery websites as reviewed in 2014 are Blue Nile (http://www.bluenile.com/), Super Jeweler (http://www.superjeweler.com), Szul (http://www.szul.com/), Jared (http://www.jared.com/en/jaredstore) and Jewelry (http://www.jewelry.com/). It is estimated that by 2020 the online sales of fine jewellery might reach 10% and that of fashion jewellery may reach around 15%. In 2011 US accounted of 11% of total industry sales. Tiffany & Co. runs web-stores in 13 countries having overall online sales of 6%.
If you wanna start your Jewellery Business...Do read.
The first and foremost problem comes in case of getting proper and regular supply of good raw material which can be trusted. Use pattern booklet for inventions rather than designing customized jewellery during start up. Create unique designs to set your business a step ahead from others. Find out a regular supply for essential jewellery tool kits from any specialty supply stores.
Now make a good business plan along with analyzing and defining your plans and goals. Find out ways to offer quality customer care services, produce unique jewellery designs and innovative selling techniques.
Pricing of your design can make your business to be a great success. Price your products according to the time, manpower and materials involved. Avoid high pricing. Make it competitive, along with looking into profit. Also don’t keep it too low as this might make customers lose their trust on you.
Use of online presence is the best way to reduce shop rents and royalties. It will also help you to stand out in the jewellery business. The main advantage is that it will help you to increase the customers reach, but unless you have a good amount of jewellery designs in abundance which requires increase in labor it is not worth starting an eCommerce website. It is better to use a popular online shopping cart when you have little products. Also use good quality professional camera while taking photos of your product. It is better to make a model wear your products for having better impact on the customers in turn increasing web jewellery sales.
Register with a good business name, also you might need to get a tax ID number based on law and industrial standards. Use a website for promotion of business and register with a good domain name. Market your website and products through social media as they are free and are accessed by large number of people who might show their interests. Send your followers regular e-newsletters and make them attracted to your products. This all might help you.
Major Merging that took place in the Jewellery Industry
Luk Fook Holdings (International) Ltd of China has recently acquired smaller companies like China Gold Silver Group (CGS). The well known Swatch Group acquired jewellery brand Harry Winston based in Toronto, in January 2013 which will be renamed as Dominion Diamond after completing the sale to Swatch. Kering SA acquired Hong Kong’s jewellery brand Qeelin in December 2012. Aurum Holdings, which leads jewellery sales in the UK, was acquired by US private equity firm Apollo Global Management in December 2012, which also acquired Claire’s Stores. Italian private equity Clessidra took control of Buccellati to aid fund development in Asia. Overnight Mountings has purchased the assets of Satco Casting which is into providing precious metals for jewellery industry and Plaza Bracelet Co., which designs tennis-style bracelets. Signet Jewelers acquired the Excelco diamond polishing factory in Gaborone, Botswana and Ultra Diamonds.
There is a lot of fluctuation still going on in the jewellery industry. Also there is a lot more scope for online jewellery shops. We might find a lot of them in the coming years.
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